There is no harm in having just one trading system as long as you realise and are patient enough to wait for just the right market conditions to trade.
To be honest I don’t like mechanical trading as it is too restrictive. But if that style makes them money then who am I to criticise. Scalping is not for everyone but it becomes frustrating when thoes who cannot master scalping criticise those of us that do sucessfully scalp. More over question why we scalpers sit in front of a computer and trade the way we do.
Coz this is how Hollywood and mass media tend to portray “whiz traders” who wear suits and trade on gaming rigs with 4 or 6 display monitors pouring through charts all day with an adrenaline rush.
I can see why you think some of us get at scalpers. My issue isn’t with scalping per se.
My issue is that choosing to scalp as a beginner is fraught with danger.
And no disrespect but successful scalpers here tend to forget that.
I always liken it to learning to drive in a formula one racing car. For most it ain’t going to end well.
This forum is for beginners after all and I feel that if they just tempered their enthusiasm at first and took the slower timeframes they would suffer less trading psychological baggage they could then be successful at any style they choose
But once you’ve got that trading baggage it’s hard to recover from it - it took my years to recover from mine.
Yes bacsically you are right but you and I are not beginners and we are on this site. Yes to help those who are new. But there are also those traders on this site who are not beginners and are looking to learn new ideas to help improve their own trading skills.
There is a different trading style for every trader The trick is to match your personality and trading style. I personally can not handle 20 pip pullbacks against my main position, I would rather get out and reenter. Overnight positions also are way too risky for me as well. I prefer using my toolbox much like a surgeon with his scalpel. If you apply it correctly ,you will get the job done, but if you do not know what you are doing, you will certainly cut yourself up…There are some very big and successful traders who only scalp, so don’t believe it is only beginners who scalp.
So compared to swing traders, yes we will see the same bigger picture, we agree on direction, it is only the method to profit from that move that differs.
I came across this youtube post, it will clarify the point
" Scalping_an effective and highly profitable trading strategy". Certainly the best youtube vid.
Ha ha ha, well said johnscott ,I get the same when I decide to seriously increase my lot size ,the market will then immediately start rangetrading for at least 2 weeks!
If you need to pull out money, it’s difficult to make money. Trading is more of psychological. We need to be pressure free to make right decision. That’s why it’s been said that trade with the money that you can afford to lose. And for newbie scalping is bad because it doesn’t let them settle their mind. As a results they open many unnecessary trades and lose money. For trading we need to find out how to remain calm.
I checked that video out and it is almost exactly what I do. It was a great video and even though he was scalping stocks it works well with commodities like gold and oil. It also works with currencies although you have to vigilant at watching those big momentum moves as sometimes a big candle that breaks a support or resistance area will be a shake out designed to trap traders.
Lot of the attraction to scalping is that new traders know they don’t know what they’re doing (they’re new, not stupid) and they believe that small means low risk. Therefore - small positions, short duration trades, small account, no long-term analysis, get in/get out quick, get the money i the bank before the market notices what you’re doing, learn fast (the more trades the faster you learn), etc. etc.
These are logical starting points coming into a risky field you know nothing about. Unfortunately, the principles that have brought us academic and professional success on other fields are inappropriate for trading. Our education and previous work only prepare us to fail as traders.
Yes those shakeouts are a pain in the backside, and I notice they are becoming more and more frequent over the years. Markets are forever changing, and false breaks are becoming the “new normal” I have spent the last 2 weeks looking at the larger picture, and then taking positions ahead of short term S/R levels, and when the break occurs, then feeding the ducks at the other side of the levels. {When the ducks are all around you, begging to be fed, just feed them all, is my motto!) It was a highly profitable period.
Also one should just cut those losers real short. I really believe in the Pareto principle, also known as the 80 20 rule.
80% of our results in life stem from 20% of our efforts
80 % of work done in an organisation comes from 20% of workers
80% of one’s profits come from 20% of one’
s trades.
Same for losses.
So basically I trade by 2 acronyms. DFIU, and GTFO. (Dont mess it up for winning trades, and Get the hell out for losing trades.)
Cheers man, profitable week to you!
I am not a scalper but I guess, the biggest obsession is the quick gains, tho they are small. But if someone is a newbie, quick gains are attractive to him or her as it build up the confidence. But what most of the newbie traders ignore is that one big loss would automatically pull out all the small gains they have had made.
Oh please stop it. You will make me blush. Calling me an elite.
There are many money management strategies to reduce risk.
One that I use regularly is if I think the premise of my trade is correct and the trade draws down I buy at the lower price and when price gets back to my entry price I close the trade with a break even on my first entry and a small profit on the trade bought at the lower price.
However like any investment you need to balance your portfolio. So if you are able to scalp, swing and position trade you then can manage your losses even more as you spread your risk across different trades.
You are right trading like that is risky if you don’t know what you are doing and it is not for the faint hearted.
Lets say you bought the EUR at 1.1700 and the price falls to 1.1690. You buy another lot at 1.1690 and when price gets back to 1.1700 you close the trade and take a break even trade on your first trade and a small profit on you second trade.
I have spent the last 2 weeks looking at the larger picture, and then taking positions ahead of short term S/R levels, and when the break occurs, then feeding the ducks at the other side of the levels. {When the ducks are all around you, begging to be fed, just feed them all, is my motto!) It was a highly profitable period.
